Why Did The Millionaire Borrow 5000 Pounds ?

A gentleman walked into a bank in London and asked for the loan officer. He said he was going to US on business for two weeks and needs to borrow 5,000 Pounds.

The Loan officer said the bank would need some kind of security for such a loan. So the gentleman handed over the keys to a new Rolls Royce parked on the street in front of the bank. Everything checked out, and the bank agrees to accept the car as collateral for the loan. An employee drove the Car into the bank’s underground garage and parked it there.

Two weeks later, the gentleman returned, repaid the 5,000 Pounds and the interest, which came to around 20.58 pounds. The loan officer said, “We are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is why would you bother to borrow 5,000 Pounds?”

The gentleman replied, “Where else in London can I park my car for two weeks for 20 bucks?”

10 Responses to Why Did The Millionaire Borrow 5000 Pounds ?

A very old story, heard & read several times before via various media.
Secondly, its illogical to believe that a MILLIONAIRE owning a Rolce Rice car will not have a place to park the car, when such millionaires have mansions with multi car garages. In USA even a middle class family have a car garage at their house. It’s better for FFJ to check such stories before releasing, to maintain credibility of FFJ.

The banker themselves are fools. They did not know the simple procedures of making a loan agreement with the borrower. Properties which are given as collateral need not be held in possession at the hands of bankers. A lien would have been created officially while leaving the property in the custody of the borrower himself. Anyway coming to the moral of the story, the author made an attempt to explain the smartness of the borrower but unfortunately he failed in framing his story from a real life scenario in legal perspectives. Nothing to add more with my key board.